The purpose of this study is to explore relationships among energy consumption (EC), real gross domestic product (GDP), Oil Price (WTOILP), export (EXP) and import (IM) for Nigeria and Ethiopia. This study is interesting in the sense that Nigeria and Ethiopia are currently one of the fasted growing economics and largest population in Africa, but still endure energy problems. The data are collected at the yearly interval from the World Bank, IMF, EIA, spanning from 1980 to 2012. Time series techniques especially Granger causality test, Johansen test, Cointegration, and VAR were utilized to test the causal relationships. In Nigeria, there is a bidirectional causality between energy consumption and GDP for both Nigeria. There is a unidirectional causalities running from Oil price to energy consumption, energy consumption to exports, GDP to oil price. In Ethiopia, there is a bidirectional causality between energy consumption and GDP. There is also a unidirectional causal relationship running from import to export, energy to imports. After reviewing the results, the author suggests specific policies.
